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AMERICAS DATA CENTER COLOCATION MARKET WAS VALUED AT USD 7.75 BILLION IN 2021 AND IS EXPECTED TO GROW AT A CAGR OF 5.34% TO REACH USD 10.58 BILLION IN 2027 DURING THE FORECAST PERIOD

Americas Data Center Colocation Market Report Includes Size In Terms Of

  • Colocation Services: Retail Colocation and Wholesale Colocation
  • Infrastructure: Electrical Infrastructure, Mechanical Infrastructure, and General Construction
  • Electrical Infrastructure: UPS Systems, Generators, Switches & Switchgears, PDUs, and Other Electrical Infrastructure
  • Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
  • Cooling Systems: CRAC and CRAH Units, Chillers Units, Cooling Towers, Condensers, and Dry Coolers, and Other Cooling Units
  • Cooling Techniques: Air-Based Cooling Technique and Liquid-Based Cooling Technique
  • General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression, Physical Security, and DCIM
  • Tier Standard: Tier I & Tier II, Tier III, and Tier IV
  • Geography: North America (U.S. & Canada) and Latin America (Brazil, Mexico, Chile, Columbia, and Other Latin American Countries)

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2022-2027

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381 Pages

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46 Tables

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134 Charts

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2 Regions

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7 Countries

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58 Companies

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9 Market Segment

AMERICAS DATA CENTER COLOCATION MARKET REPORT SCOPE

Report Attribute Details
Market Size (2027) USD 10.58 Billion
Market Size (2021) USD 7.75 Billion
CAGR (2022-2027) 5.34%
MARKET SIZE - AREA (2027) 8,495 thousand Square Feet
MARKET SIZE – POWER CAPACITY (2027) 1,317.5 MW
BASE YEAR 2021
FORECAST YEAR 2022-2027
MARKET SEGMENTS Colocation Service, Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standard, and Region
REGIONS COVERED North America and Latin America

MARKET OUTLOOK

The Americas data center colocation market is estimated to reach USD 10.58 billion by 2027 from USD 7.75 billion in 2021, growing with a CAGR of 5.34% from 2022 to 2027. The growth in the market is driven by the deployment and advancement of 5G, growth in the application of Artificial Intelligence, Smart city development, renewable energy procurement, adoption of IoT, and Big data.

Some colocation data centers are developing wholesale colocation space in their facilities across several countries to support growing colocation demand from cloud service providers such as Microsoft, Oracle, IBM, Google, Huawei, AWS, and government entities. The computing power in the facilities has grown significantly due to increased demand for cloud services, big data, and IoT, which has increased rack power density. The increased data bandwidth and high-performance computing will drive the operators to procure efficient infrastructure to manage any downtime in the facilities.

COVID-19 has been a boon across the Americas data center colocation market, accelerating digital transformation initiatives across the region, increasing facilities service demand, and capacity utilization among colocation facilities are significant factors.

Governments across the region are aiding the growth in the construction of centers by offering several tax benefits. Arizona, Georgia, Indiana, Nevada, Minnesota, Ohio, Oregon, Tennessee, Texas, Utah, Virginia, and Washington DC are some U.S. states that provide tax incentives for facilities construction, infrastructure purchase, and power procurement by data centers. Latin American countries such as Brazil, Colombia, Argentina, and Chile provide tax invective for centers development, digital services providers, and infrastructure procurement.

KEY TRENDS IN THE MARKET

Deployment of 5G Drives Edge Data Center Investments
The rapid investment in 5G technology and its deployment will increase the number of connected devices, leading to the generation of a substantial amount of data, further increasing investments in edge data centers across regions for low latency and ease of accessibility to data device-to-device communications. American Countries have deployed 5G network services, and some are on a 5G trial basis. AT&T, T-Mobile, CenturyLink, TELUS, Rogers Communications, Bell, SaskTel, Nokia, SubTel, Alvis, Claro, Antel, Entel, and Ericsson are some of the companies which are involved in the deployment of the 5G network services across the region.

In the Americas, countries such as the U.S., Canada, Chile, and Uruguay have commercially deployed 5G network services. Additionally, Brazil, Colombia, Argentina, Mexico, Peru, and other Latin American countries are in the stage of 5G planning, trials, and yet-to-deploy commercial services during the forecast period.

Innovative Technologies
Smart Grid UPS is a data center innovation in power infrastructure. It is a UPS facility that works as bidirectional power converters. The smart grid UPS facilitates efficient power control and provides power backup per the facilities' requirements. Diesel generators are replaced by Hydrotreated Vegetable Oil (HVO), the oil which is synthesized from vegetable oils. HVO is 25% costlier than regular diesel. This HVO fuel generates less carbon emission (reduced by 90%) compared to regular diesel.

The centers' cooling infrastructure innovations include direct-to-chip cooling, liquid emersion cooling, and water-free cooling. Underwater facilities, Micro facilities, floating facilities, and edge data centers are some innovations in the center's design. The vendors are developing sustainable cooling techniques the vendors like Nautilus Technologies and Infinidium power developed cooling techniques like water-free cooling, floating centers, and the Vortex vacuum chamber, which generate power from the waste heat generated from the facilities.

SEGMENTATION ANALYSIS

  • The Americas data center colocation market witnessed the adoption of innovative power infrastructure equipment like the Nickel Zinc UPS, Lithium-ion UPS, Prussian Blue Sodium ion UPS, Smart grid UPS, and HVO fuel generated in the centers.
  • Most edge facility deployment will include single-phase lithium-ion UPS and monitored and switched PDUs. Therefore, the emergence of edge facilities will majorly boost market growth.
  • Data centers invest more in power infrastructure with a minimum of N+1 redundancy. Most centers are installed with N+N or 2N redundancy for power infrastructure with more redundancy for UPS and generator systems.
  • In North America, the U.S. and Canada majorly rely on free and air-based cooling systems, as these two countries mostly experience colder temperatures compared to Latin American countries. In Latin America, water-based cooling systems are majorly used; some parts of the Latin American countries adopt air-based cooling systems due to the peak winters.
  • AECOM, Aceco TI, DPR Construction, Arup, Tuner & Townsend, RED, Constructora Sudamericana, Fluor Corporation, First Gulf, Holder Construction, Salute Mission Critical, Jacobs, Quark, and ZFB Group are some construction contractors building facilities in the Americas.

GEOGRAPHICAL ANALYSIS

The North American data center market leads growth in the overall industry, with early availability and adoption of innovative technology and investments from colocation service providers, hyperscale operators, enterprises, and government agencies. Investments in North America are driven by the availability of land, governmental support, data protection laws, and tax incentives by the state governments. In North America, the U.S. dominates the Americas data center colocation market, followed by Canada, with increased investments from colocation providers, hyperscale data center operators, enterprises, and government agencies in data center facilities, adopting redundant power backup infrastructure. Northern Virginia, Georgia, California, Texas, Arizona, Ontario, Montreal, Toronto, and Richmond are favorable destinations for investors in North America.

In Latin America, countries like Brazil are witnessing the rapid adoption of renewable energy, which leads to the growth of the facilities; in Mexico and other Latin American countries, the demand for centers was driven by the growth of the gaming industry and the special economic zones.

VENDORS LANDSCAPE

The Americas data center colocation market key investors include Equinix, Digital Realty, CoreSite, Switch, ODATA, Cyxtera, HostDime, STACK Infrastructure, and Cologix. In 2021, STACK Infrastructure, Switch, and Cologix were the significant contributors to the power capacity added in the Americas data center colocation market. CoreSite, DataBank, and Switch are investing in more than ten center facilities in the Americas.

In terms of colocation, investment was led by Digital Realty in 2021, with a market share of around 21.3%. Digital Realty, the prominent colocation service provider in the Americas, followed Switch with a market share of approximately 8.1% in investments. The company invested in the development of around four data centers in Dallas, two in Ashburn, and four data centers in Ontario.

Acquisitions play a vital role in the Americas data center colocation market. The significant acquisitions in the industry include:

  • KKR and Global Infrastructure group acquired CyrusOne
  • Digital Realty and IFM acquired Switch,
  • American Tower acquired CoreSite
  • Blackstone acquired QTS Realty Trust
  • Equinix acquired Entel (4 data centers)

Frequently Asked Questions

How big is the Americas data center colocation market?

The Americas data center colocation market was valued at USD 7.75 billion in 2021.

What is the growth rate of the Americas data center colocation market?

The Americas data center colocation market is growing at a CAGR of 5.34% from 2022 to 2027.

What is the expected Americas data center colocation market size by 2027?

The Americas data center colocation market is expected to reach USD 10.58 billion by 2027.

Who are prominent vendors in the Americas data center colocation market?

Some prominent vendors in the Americas data center colocation market are Equinix, Digital Realty, CoreSite, Switch, ODATA, Cyxtera, HostDime, STACK Infrastructure, and Cologix.

What are the factors driving the Americas data center colocation market?

The key factors driving the Americas data center colocation market are an increase in adoption of artificial intelligence, rise in deployment of 5G, advancement in digitalization, mergers & acquisitions, joint ventures giving rise to developments, and growing investments in cloud connectivity.

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The Americas data center colocation market size will reach USD 10.58 billion by 2027, growing at a CAGR of 5.34% from 2022 to 2027.

The following factors are likely to contribute to the growth of the Americas data center colocation market during the forecast period:

  • Tax Incentives
  • Increase in ColocationInvestment
  • Renewable Energy Drives Data Center Growth
  • Adoption of IoT & Big Data and Smart City Developments
  • Increase in Deployment of Submarine and Inland Cables

Base Year: 2021

Forecast Year: 2022-2027

The study considers the present scenario of the Americas data center colocation market and its market dynamics for 2022−2027. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.

Prominent Colocation Investors

  • CyrusOne
    • Business Overview
    • Service Offerings
  • Digital Realty
  • Equinix
  • GTD Perú
  • HostDime
  • IPXON Networks
  • Lumen Technologies
  • NTT Global Data Centers
  • OData
  • QTS Reality Trust
  • Scala Data Centers
  • Switch
  • Vantage Data Centers

Other Prominent Vendors

  • 365 Data Centers
    • Business Overview
    • Service Offerings
    • Key News
  • Aligned
  • American Tower
  • Ava Telecom
  • CloudHQ
  • Cologix
  • Compass Datacenters
  • COPT Data Center Solutions
  • CoreSite
  • Cyxtera Technologies
  • DartPoints
  • DC BLOX
  • EdgeCore Internet Real Estate
  • EdgePresence
  • Element Critical
  • eStruxture Data Centers
  • fifteenfortyseven Critical Systems Realty (1547)
  • Flexential
  • GIGA Data Centers
  • InterNexa
  • Iron Mountain
  • Millicom
  • Prime Data Centers
  • Quântico Data Center
  • Sabey Data Centers
  • Skybox Datacenters
  • STACK Infrastructure
  • Stream Data Centers
  • T5 Data Centers
  • Telmex
  • Urbacon Data Centre Solutions
  • Vapor IO

New Entrants

  • AUBix
    • Business Overview
    • Service Offerings
    • Key News
  • Cirrus Data Services
  • DāSTOR
  • Eastlink
  • EdgeX Data Centers
  • Enovum Data Centers
  • Gatineau Data Hub
  • Intermarket Properties
  • Novva
  • PointOne
  • QScale
  • Quantum Loophole
  • Yondr

Segmentation by Colocation Service

  • Retail Colocation
  • Wholesale Colocation

Segmentation by Infrastructure

  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Segmentation by Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units

Segmentation by Cooling Technique

  • Air-based Cooling Technique
  • Liquid-Based Cooling Technique

Segmentation by General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression
  • Physical Security
  • DCIM/BMS

Segmentation by Tier Standard

  • Tier I & Tier II
  • Tier III
  • Tier IV

Segmentation by Region

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Chile
    • Columbia
    • Other Latin American Countries

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